Cobrapost bites banks, insurers

After stinging India’s three leading private sector banks, investigative news website Cobrapost’s second report on Monday levelled serious allegations against public sector banks and insurance companies among others.

The report, Red Spider Part 2, reveals large-scale wrongdoings at 23 major public and private sector banks and insurance companies, including money-laundering.

The report names public sector entities such as Life Insurance Corporation, State Bank of India, Punjab National Bank, Bank of Baroda, Central Bank of India and Canara Bank, and a host of other entities such as Reliance Life Insurance, YES Bank, HDFC, Axis, ICICI and TataAIG.

“Our interactions with all officials, some with the rank of divisional manager, territory manager, assistant general manager and vice-president… bear it out clearly that they are parties to and facilitators for these (money laundering) transactions and are conducting their questionable business with nonchalance…” a Cobrapost release said.

“Money laundering practices are part and parcel of banking and insurance business across the board; Even a walk-in customer can avail of such services that help him launder all his unaccounted cash,” it said.